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July 17th on the chrome interview

Leon interview on the 28th June

SIMON BROWN: Yeah, absolutely. PGMs, which is where Jubilee very much started – a little over 40 000 ounces targeted this year. This is the mature part of the business, and my sense is probably production at capacity and maybe not an area you are massively focusing on, compared to chrome and copper. Is that a fair shout?

LEON COETZER: It’s fair in the sense that of course the PGMs are an outcome of our chrome business. [That business] is mature, it’s running very efficiently, it’s also a nice product that comes as a by-product out of our chrome business, and therefore it’s less fully exposed to the heavy cost pressures and the softer PGM price the market faces at the moment.

You are right, it’s not the fundamental focus of our business. It’s a nice offset to our chrome business, and it’s a nice hedge for when the PGM price recovers, which is fully expected by most of the PGM industry.

SIMON BROWN: It is fully expected by almost everyone. It was Neal Froneman who bravely back I think in February said the market has bottomed. The story for PGMs is still there. I know a lot of folks will say EVs, but Ice [internal combustion engine] cars aren’t going away. There are other uses for PGMs, but prices are just at this point kind of laughing at markets and palladium and platinum stuck at around $1 000/oz.

LEON COETZER: Very much so. I agree with Neal Froneman’s view that if you look at the world, the demand and the supply, PGM prices are set to recover. And you are right. If you look to towards the future, energy sources, especially energy sources for motor vehicles, EV alone is to be the sole solution. It has to be complemented by other sources, because we simply don’t have enough copper in the world to feed that kind of EV demand in the world in any event. And then if you look at the uptake of hybrid vehicles becoming far more popular, it’s driving the need for PGMs again. So no doubt, I think we all are expecting that recovery to come in the near future.

Hmm !!

We have a CEO who wants to sell our platinum business who has said he expects a recovery in price.

Continue

So the big beneficiaries are mines. Out of the four big ones, Northam is the biggest beneficiary because it has a fairly high ratio of chrome concentrates in terms of about 1.3 million tonnes of chrome concentrates that it can produce and sell per annum, versus a million ounces. So the chrome/PGM ratio is very beneficial. Others don’t have as much chrome versus their higher PGM levels. So Northam is the one in my books that stands to benefit most. In the last six months its contribution of chrome to revenue has gone from 1.7% two years ago to just over 12% in the six months to December 2023, and it’ll probably go to about 18% of their revenue – a very, very big chunk of their profit.

SIMON BROWN: And the point, I suppose, is that the PGM prices are under pressure – make no mistake about that. But they’ve been raising their chrome production and that’s become so important. And of course one day PGMs will go back up, but that chrome is still there – and perhaps as an industrial it’s maybe a little less volatile for earnings.

BRUCE WILLIAMSON: Yes, it’s become far more important because we’ve had a massive pullback in palladium and rhodium in particular. Platinum has gone nowhere for a number of years. They’re all in very, very low territory. But the chrome now is a nice sweetener.

As I said in my book, Northam is the major beneficiary; the others are not going to benefit as much. Sure, there’ll be some extra revenue. And going forward one is hopeful that this new build, that our ferrochrome smelters in China will keep the demand. Once you run that smelter, you want to lock in that supply; you know the quality, you know the consistency. You’re dealing with proper suppliers, and I think that’s pretty safe revenue for these guys.

I’m chatting with Bruce Williamson of Integral Asset Management. Bruce, appreciate the time. I’ve got to say chrome. There have been some chrome miners on the JSE, but recently it had gone quiet until Pavlo Phitidis there, Tharisa Vulcan chrome plant. I was chatting with Jubilee Minerals recently. Suddenly chrome is a big story. It is in demand. China seems to be the big market and prices have been looking quite good recently.

BRUCE WILLIAMSON: Hi, Simon. And good day to your listeners as well. Yes, chrome has come to the fore, whereas its system metals, the PGMs, have taken a fair amount of pressure in the last two years. Chrome is in big demand and I think it’s essentially driven, as you mentioned, by China. Remember that China is doing a lot to clean up its old polluting industries. Much of that came from dirty iron ore and dirty ferrochrome. You’re seeing new plants being built and these guys need to secure supply. If you’re running smelters, it’s got to be 24/7. And South Africa has about 70% of world chrome reserves. With our neighbour Zimbabwe, we’ve got another big chunk. So they come looking to South Africa for chrome.

SIMON BROWN: It’s a by-product. We were chatting before we came along, and my understanding is that chrome is a by-product of PGMs, but no one really cared about it. But now you’ve got these giant tailings that in some cases are very rich in chrome. So this is an easy win for the PGM miners.

BRUCE WILLIAMSON: Okay. In some cases it’s a by-product. Remember that there are three main chrome seams. The LG, the lower group; the middle group, the MG; and the UG, the upper group. Now the dedicated chrome miners mine the LGs and the MGs. That’s a higher grade chrome, in situ grade, and that goes into the ferrochrome business. And then the UG2, which in situ is call it 20% chrome, is too low for the chrome guys, but it has about five-odd grams per tonne of platinum. So the platinum miners have mined the UG2 chrome seam for a long time.

The guys who are standing to benefit now are the ones who mined the chrome, processed the UG2, put the chrome onto the tailings for 20/30 years and sold the PGMs. Now they’re able to take those chrome tailings, which are lying there, costed and paid for, and they can sell a concentrate of about 40%, 42%, which is in huge demand by the Chinese.

SIMON BROWN: It’s almost essentially then free because, as you say those tailings have been paid for; there’s some cost of running the plant. I imagine their biggest challenge is perhaps logistics, because getting it to port – this isn’t a PGM or a gold which you can pop in a helicopter.

BRUCE WILLIAMSON: Correct. It’s a bulk, so it’s got to go out. On mine, you are correct, the costs are marginal. It’s between 95% and 98% profit on the recycled UG2. But it’s got to be trucked out.

Some years back 80% of our chrome went out by rail. Now 80% goes out by truck and we all know that’s because of Trans

Rhodium

USD/t oz.

6925 425 6.54%

Looks as if we are going to see new yearly highs on palladium this week and Rhodium

Palladium closing in on $1300 up 2.5% this morning.

Platinum will climb to over $1500

It will be a interesting week on share price and views on the detailed takeover.

Thanks Seis

Here what was RNS

Construction and commissioning of the Roan Front-End Module were completed during July 2024 with production of first copper concentrate announced on 12 August 2024.

o Production of copper concentrate from the Roan Front-End Module is in addition to the existing sulphide copper concentrate production from Roan's mill and flotation circuit currently being traded in the market.

o Roan's capacity is dedicated to the processing of Previously Mined Material and Previously Processed Material.

o Early results indicate Roan's Front-End Module achieving a 10-fold copper grade upgrade into concentrate from Previously Mined Material meeting design specifications.

o These early results provide further confidence in the proposed process design solution being developed for the Waste Rock Project in partnership with IRH.

§ Jubilee expanded its portfolio of Open-Pit copper resources with the acquisition and implementation of Project Munkoyo and the agreement for the acquisition of Project G as previously announced on 24 June 2024. Both operations contain significant copper resources that are near surface and are currently being open-pit mined with material being delivered to Sable for refining.

o Project Munkoyo was brought into operation during July 2024, ahead of schedule, with mined run-of-mine (ROM) grades exceeding 3.5% copper which is delivered to Sable for refining.

o Jubilee is concluding its technical review of Project G with expected completion during September 2024. Bulk sampled mined material is being refined at Sable as part of the technical due diligence review.

o Jubilee has entered into further negotiations for additional Open-Pit copper resources surrounding both Munkoyo and Project G where Jubilee targets to implement processing hubs to upgrade the copper ROM at both locations.

§ Sable Refinery is currently being upgraded to expand its refining capacity and copper sulphide concentrating capacity targeting to reach a combined capacity of 16 000 tonnes per annum of copper which will be dedicated to the concentrating and refining of Open-Pit mined copper resources.

§ The Roan Front-End Module and Concentrator, and the Sable Refinery are expected to reach a processing capacity in excess of 25 000 tonnes of copper per annum.

Looks like we are a year behind on the 25,000 !!

Good morning

Thanks for the link.

If Munkoyo open pit is a super pit extending 1 kilometre or more and they have decided to finance the waste dump themselves then I will more likely vote for the takeover.

We will soon find out as resource update is overdue.

I suspect if it is the share price will climb rapidly.🤞

Happy

Good evening

Can you post a link as I can’t remember seeing the below in a RNS

shown the potential for a new copper resource along a ONE KILOMETER strike."

Or was it on the roast

Loot

Good bye

😊

Where chrome buckles under margin pressure, platinum prices have offered relief. Over the latest quarter platinum complex values surged by around a third, a boon to Jubilee’s refined PGM division. The impact is amplified by the technical relationship between metals: Jubilee’s management points out that a 1 per cent shift in chrome pricing is now roughly equivalent to a 4.5% move in platinum. As such, even a modest uptick in the PGM basket can offset outsized slides in base-metal sectors. It is this asymmetric exposure that underpins the “unexpected hedge” in the title, a deliberate tilting towards precious-metal strength to smooth earnings volatility.

You might also enjoy reading Jubilee Metals Reports Strong FY2025 Output as Focus Shifts to Copper – Shard Capital

Looking ahead, guidance for the new financial year calls for chrome concentrates of between 1.65 million and 1.80 million tonnes and PGM output of 36 000 to 40 000 ounces. While these targets lie below the recent highs, they emphasise sustainability over sheer scale, reflecting caution amid mixed market signals.

Management highlights the superior growth potential and stronger margins in copper, and the forthcoming full update on Zambian operations is likely to be scrutinised closely. For now the copper segment remains the strategic growth lever, with Zambia trials at a high-grade concentrator nearing completion and set to inform future supply agreements. The pivot suggests that Jubilee is positioning itself for a commodity cycle where copper’s role in electrification and renewable-energy infrastructure offers a more compelling earnings trajectory than the ebb and flow of steel-related metals.

Operational resilience and safety remain focal points. Jubilee’s South African sites recorded an improved lost-time injury frequency rate of 1.33, the best in recent years, with no classified injuries reported. A new PGM joint venture initiated in the spring is now in trial phases, overseen by Jubilee’s internal technical team, promising incremental throughput and potential cost efficiencies as it scales. These developments underline the company’s broader commitment to operational excellence even as it reshuffles its asset portfolio.

Happy have some more reading came out yesterday.

Amid tumbling chrome valuations a subtle counterbalance is unfolding in Jubilee’s metal mix. While stainless steel markets have sent chrome prices into retreat since May, a rising platinum complex and an astute reshaping of supply partnerships have given the group’s latest figures an intriguing twist. Investors seeking clues to Jubilee’s next strategic move will find the interplay between metals and the company’s evolving portfolio hard to ignore.

Jubilee’s South African operations pushed chrome concentrate output to just over half a million tonnes in the latest quarter to end-June, edging close to guidance yet arriving against a backdrop of roughly an 11% slide in benchmark chrome price. What might have flagged concern instead morphs into a story of managed exposure: the ramp-up in production from third-party mining partners and the parallel advance in platinum group metals (PGM) have helped to counter the pressure on margins. In the three months to June, chrome volumes rose almost 20% year on year, while 6E PGM output, comprising platinum, palladium, rhodium, ruthenium, iridium and gold, extended its upward run by nearly 15%. It is this calibrated balance between volume gains and metal mix that marks Jubilee’s latest quarter as more than a simple reaction to commodity swings.

Underlying the numbers is a strategic pivot in how Jubilee sources and processes its chrome feedstock. The end of a sizeable ore supply contract in South Africa left a potential 450 000 tonnes per annum hole in the group’s book. Yet this shortfall has been largely absorbed by partnerships delivering direct ore offtake, which now account for around 70% of chrome volumes. These alliances offer Jubilee not only steady throughput but also enhanced upside to pricing movements, shifting some of the revenue risk onto third-party miners while preserving operational leverage. Investors accustomed to Jubilee’s traditional tolling model will note this transition as a subtle but meaningful realignment of risk and reward.

Apologies excepted happy

When you’re ready

Https://www.linkedin.com/posts/ricus-grimbeek_after-more-than-30-years-in-the-mining-industryworking-activity-7343913672609619969-2O4J

Lol Happy

Cheer up.

Was posted 4 weeks ago on his move to Australia

Good to see someone putting family first before his job.

In fact, Makor Resources was entering one of its most pivotal moments—we had just signed a major joint venture in Zambia’s emerging copper belt.

Happy reminds me of smelly on Advfn

Makor Resources has just signed a major joint venture in Zambia’s emerging copper belt. Jlp??

Happy

Were you not moaning about losing Rik

Looks to me we have a very experience person over seeing our operations in Zambia.

Chris Koen (MBA)

Head of Mining - Zambia

Jubilee Metals Group PLC

About

I present myself with 29 years mining experience in many different mining applications. My ability to work under stress assist me in finding solutions to reduce production constraints. Safety in the workplace is my first priority and I enjoy creating manageable safety programs. I am a peoples person and have a wealth of knowledge in local development. I am a budget focused leader and a strong organizer, motivator and team player. I get the job done safely, on time and on budget.

Some had wondered why Our previous CFO had left

Neal Reynolds went straight from Jubilee in October to

Group CFO of Averda a large company employee over 13,000 people

A big promotion from little Jlp

Https://www.lme.com/Metals/Non-ferrous